Analysis: Bitcoin Flash Crash, Market Rejects "Falling Knife," Liquidations and Risk Aversion Sentiment Resonating

Deep Tide TechFlow News, on February 6th, according to The Block, Bitcoin briefly plunged to $60,000, hitting a 16-month low. During the same period, Ethereum dropped to around $1,750 before rebounding to approximately $1,890. On-chain and derivatives markets experienced large-scale deleveraging simultaneously, and market sentiment quickly shifted to a defensive mode. Analysts pointed out that this round of decline was caused by multiple factors, including forced liquidation of overly leveraged longs, outflow of institutional funds, and overall pressure on macro risk assets, collectively triggering a typical “leverage liquidation-driven de-risking.” Trading behavior also showed a clear shift, with the market moving from “buying on dips” to waiting for trend confirmation. Capital now emphasizes preservation, and rebounds are often met with selling pressure, further strengthening short-term downward momentum. The market is generally focused on the support strength in the $58,000-$60,000 range. If the price can form a stable structure within this range and macro or industry positive catalysts occur, there is still potential for phased recovery, but the confirmation process is expected to take time.